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Unformatted text preview: 6.5 million Total Liabilities $ 7 million $ 7.5 million Equity Contributed Capital $35 million Retained Earnings 15 million Total Equity $50 million Total Liabilities and Equity $57 million 1) Why would a firm like Illini make this kind of investment in Hoosier? a) How is this investment different from the usual investments firms make in stocks or bonds of another firm? b) What kind(s) of return is Illini potentially seeking from this investment? 2) For each asset and liability for which the fair value is different from Hoosiers book balance, identify and explain a few potential reasons for the difference. 3) From a book balance standpoint, Hoosiers balance sheet balances. From a fair value standpoint, should the balance sheet balance on 1/1/2011? Why or why not?...
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- Fall '08